The expected surge of economic growth between July and September did not occur, new figures have revealed. It is thought that growth was weighed down by the poor showing of the crucial financial services sector.
In response to their findings, the Office for National Statistics has revised downwards its estimate for UK economic growth in the third quarter from 0.5 per cent to 0.4 per cent. The annual growth rate was also trimmed to 2.1 per cent from 2.3 per cent.
Continuing the cagey feeling emitting from the new figures, the ONS also revised its estimate for growth in the second quarter to 0.5 percent from 0.7 percent quarter-on-quarter, and 2.3 percent from 2.4 percent annually.
The new figures will add fuel to the feeling that the economic recovery of recent months may be starting to flounder. Slower growth in the financial services sector is to blame for the lukewarm figures and it was weaker business inventories that drove the second-quarter revision.
Yesterday it was announced that public borrowing rose by more than expected in November, meaning that the Treasury is way off target when it comes to hitting its borrowing targets.